FHA Extends Certain COVID-19 Flexibilities

FHA recently announced that they are extending certain temporary COVID-19 related policies first announced in Mortgagee Letter 2020-24, including those related to verification of self-employment. 

Mortgagee Letter 2021-16 extends the following previously issued guidance through September 30, 2021:

• For Single Family Title II Forward Mortgage and HECM Program, the guidance on the verification of business operations for self-employed borrowers and on the verification of rental income (for case numbers assigned on or before September 30, 2021); and
• For the 203(k) Rehabilitation Program, the guidance on 203(k) escrow administration for borrowers in forbearance (for open escrow accounts through September 30, 2021).

See WBK’s previous coverage of these policies here and here.